Untenable Property Input

[Ange Johnson]

I as new landlord got the dreaded phone call of a frozen pipe causing flooding.  We have gone through the mitigation process and have learned that insurance and restoration company estimate 3 months before repairs are complete and tenants could reside in the property.  Our insurance covers lost rent (but not the utilities during the untenable period).  

I plan to ask tenants to return utilities during the displacement back in our name.

May I in writing encourage our tenants to reach out to their insurance company to see what assistance they can receive in this displacement?  (None of their property was damaged and the freeze was not due to tenant negligence).  The lease is up in 5 months, and we were considering putting the house on the market (we were lived in the property for a few years and are trying to avoid capital gains taxes when we sell this investment income).

Thanks for any suggestions as I have never had to go through a claims process this extensive in any realm.  

[Mike McCarthy]

I would be honest with your tenants and let them know that it’s probably best for everyone to just terminate the lease. (Your lease may have a clause for things like this)

If the house is a bit livable, you can offer to let them stay for a week or two while they find somewhere else to stay. Or you can help with a hotel for a few days.

It’s a pain I’m sure, but it’ll all work out. Stay on top of your insurance, and whoever you find as contractors, make sure you vet them. Don’t just go with them if they are recommended by insurance.